How malls like the Houston Galleria and King of Prussia have survived through the decades by fashioning themselves as lifestyle destinations

Indoor shopping malls have particularly struggled in the last few years, as they compete with the convenience of e-commerce and less spending by lower and middle-income shoppers. The number of malls in the U.S. declined by an average of 16.7% a year between 2017 and 2022, according to research by Capital One Shopping.

But some of the most-visited malls in America are ones that have been mainstays on the shopping scene for decades. There is the Houston Galleria, which opened its doors in 1970 and attracts over 30 million visitors annually. King of Prussia, opened in 1963, is the country’s fourth-largest mall, with 450 stores and over 30 eateries — the Simon property receives 22 million visitors every year. And Mall of America — known as the nation’s largest shopping mall — spans 5.6 million square feet and brings in over 40 million annual visitors. 

These malls have the benefit of being designated as Class A malls, which are typically located in high-income geographies or tourist hubs. But remaining a Class A mall takes work. As success stories like The Galleria and King of Prussia prove, malls have to consistently reinvest in improvements, whether it’s minor tweaks to their valet parking or major wing additions to attract more modern and diverse brands. 

The Galleria’s last large-scale renovation, for example, was in 2017. It included the opening of a new luxury wing anchored by Saks Fifth Avenue and the arrival of the restaurant Nobu. The Houston Galleria’s latest development plans, announced in 2024, include upgrades like 155,000 square feet of new flooring throughout the mall. Other upgrades include LED lighting and ceiling enhancements in the entryways of the mall.

A consistent reinvention 

King of Prussia, the country’s second-largest shopping mall, has also undergone incremental changes in recent years. In 2016, operator Simon unveiled a 155,000-square-foot expansion that included a branded dining hub called Savor King of Prussia. The expansion also features a new customer lounge and parking deck to accommodate the growing floor plan. Since last year, King of Prussia has added several new tenants, including buzzy brands like Tecovas and Kizik, and family experience store Camp. The Italian market Eataly is set to open this fall.

These consistent investments are part of what keeps attracting digitally-native brands to these malls. One of the Houston Galleria’s newest tenants, for example, is the sustainable footwear brand Rothy’s, which opened its store at the complex in April. 

Shaheen Mufti, vp of retail at Rothy’s, said the new location is part of Rothy’s’ Texas expansion, having already opened stores in Austin and in Dallas’ North Park mall. The Galleria consistently attracts startup brands; in the past year, Skims and Ring Concierge opened locations there. 

“The Galleria is a great representative of Houston’s diversity,” Mufti said. “It’s a really great lifestyle center. They’ve put a lot of intention into how someone can spend a day there beyond just shopping.”

The Rothy’s store sits at a cross-section between an older and newer wing, and shares a hall with the Lego store, which Mufti said helps bring diverse traffic. 

“The Galleria has both accessible and luxury stores, and incredible restaurants that have opened up,” Mufti said, also pointing out the connected Westin hotel and ice skate rink. “It was definitely on our wish list for store openings.” 

Rothy’s began its physical retail expansion by opening in large urban centers like San Francisco and New York. Mufti said lifestyle shopping centers help widen the brand’s reach in suburban markets. 

In the last year, Rothy’s opened stores in similar shopping complexes, like Virginia’s Tysons Corner Center and the Westfield University Town Center in La Jolla, Calif. “We love these types of centers because they really encourage people to spend the day hanging out,” Mufti said.

So far, the Galleria store has been performing well, she said. To kick off marketing efforts, Rothy’s held a water bottle swap day in June, which she said drove people to the store.

The company partnered with Hydro Flask to create a branded reusable bottle, which visitors received in exchange for their used plastic bottles. The activation was part of a bigger Rothy’s Bottle Swap initiative, which incentivizes customers to reduce plastic waste.

More than just shopping 

Charlie Skuba, faculty emeritus at Georgetown University’s McDonough School of Business, said expectations of malls have become greater as people become more selective about when and where they’ll go shopping.

“The high-end malls have a real opportunity,” Skuba explained. But it still requires a lot of capital and creativity to execute the vision of becoming a household name as a destination.

One of the biggest challenges that shopping centers face today is attracting the next generation. “You constantly have to ask, ‘What makes my mall Instagram- or TikTok-friendly?’” he said.

Still, a mall’s success boils down to segmentation, Skuba said. These destinations have to strike a balance by appealing to different types of shoppers, whether it’s families, Gen Z or elderly shoppers.

Shopping hubs around the country are refashioning themselves as cultural and retail hubs, with ambition to replicate the success of malls like the Houston Galleria or Mall of America.

One of them is Miami’s Lincoln Road, which opened back in 1960. The pedestrian-only promenade in South Beach has ambitions to diversify beyond a retail destination, vying to attract those seeking cultural activities or culinary experiences. Lincoln Road neighbors Miami’s burgeoning Billionaire Row and a slew of new luxury developments. Lyle Stern, president of the Lincoln Road BID, said the shopping promenade is currently undergoing a major expansion. This multi-phase makeover started around 12 years ago, Stern said, and has a 2028 completion date goal. The total cost is reported to be about $60.5 million.

“We’ve actually intentionally gotten away from the ‘mall’ moniker because of its connotation,” said Stern. He explained that, unlike traditional malls, Lincoln Road has multiple owners — about 65 — and stretches across eight city blocks that are closed to traffic. 

As part of the expansion, Lincoln Road is attracting new tenants and getting existing ones like Victoria’s Secret and Zara to upgrade to larger spaces. Footwear company Hoka is one recently added tenant, marking the brand’s first brick-and-mortar foray into South Florida. An Alo Yoga flagship store spanning 13,480-square-feet and featuring a yoga studio is coming soon. Lincoln Road is also attracting brand pop-ups, with recent activations by beauty brands Sol de Janeiro and Jo Malone.

Given the ongoing volatile retail environment, Stern said dining has become a big opportunity for Lincoln Road. “We’re certainly not focused just on dining,” Stern said. “It just so happens that some of the buildings were best suited for dining.”

It’s a way to optimize the spaces and bring in clientele that wouldn’t necessarily dine at a generic mall restaurant after hours. As an example, the newly opened restaurant and lounge Oro features a rooftop that is built atop the Sephora store. Other dining concepts are coming to Lincoln Road this year, including the Florence-based sandwich shop All’Antico Vinaio and New York’s Prince Street Pizza, which will be Florida’s first location.

Even with all this, Skuba said, continuously investing in upgrades and remodels doesn’t necessarily guarantee success. It’s also important to assess whether the geographical location is attractive to local demographics and can draw in premium brands and world-renowned dining options. “Sometimes that risk is worth it, but there are a lot of malls that are just past their prime,” Skuba said.

Jason Brooks, shareholder at Buchalter and member of the Real Estate Practice Group, said shopping and entertainment centers like Southern California’s The Grove or the Houston Galleria have managed to stay relevant. They’ve even received shoutouts in pop culture and adapting to changing shopping habits throughout the decades. That’s something many malls across the country have struggled to do.

Brooks also pointed to dining and entertainment becoming a bigger piece of the puzzle. Basic food courts mainstays such as chains Cheesecake Factory and California Pizza Kitchen won’t cut it at these higher-end lifestyle centers, he added. “A lot of the great malls now have quality dining options,” Brooks said. 

“You want to be the place that the mom, dad and kids want to go to and all have a great time doing different things,” Brooks said. These types of destination malls have created a fusion of hospitality into the retail space, Brooks said, whether it’s through a popular restaurant, interactive family activities or even co-working amenities. 

“They’re trying to create this destination that, once you’ve experienced it, you don’t want to leave,” Brooks said.